Does the Length of Credit History Affect Your Credit Score

Your credit history length plays a key role in shaping your credit score. While income, repayment behaviour, and existing debts matter, the time you’ve held accounts is equally significant. A strong CIBIL history shows lenders that you have long-term financial discipline, making you more trustworthy as a borrower. Understanding how your credit age influences your score helps you take smarter financial decisions and maintain long-term credit health.

Your credit history is a detailed record of how you have managed borrowed money over time. It includes every loan, credit card, and repayment you have handled, along with missed payments, outstanding balances, and defaults. This information is collected by credit bureaus and forms your CIBIL history, which lenders review before offering you fresh credit.

A good credit history shows consistent repayment behaviour and responsible use of credit, making you a low-risk borrower. A poor record, marked by delays or high debt, lowers trust. In short, your credit history is your financial reputation in the eyes of banks and lenders.

The length of your credit history is a major factor influencing your credit score. It shows lenders how long you have managed credit and whether you handle it responsibly.

A longer history provides more repayment data, helping lenders judge your financial discipline with confidence. For example, consistently paying bills on a decade-old credit card demonstrates reliability and strengthens your score.

In contrast, a short history offers limited information, making it harder for lenders to assess repayment behaviour. This often reduces your chances of securing high-value loans or premium cards.

Here are the major factors that directly influence your credit age and determine how lenders view your long-term financial reliability:

Age of Your Oldest Credit Account

The age of your oldest account is crucial, as it shows lenders long-term repayment discipline and strengthens the foundation of your credit age.

Average Age of All Active Accounts

Your credit age depends on the average age of all accounts, reflecting stability and consistency in handling credit across loans, cards, and ongoing repayments.

Closing Old Accounts

Closing old accounts lowers your overall credit age, removing valuable repayment history that strengthens your CIBIL history and potentially weakening your creditworthiness.

Opening New Credit Lines

Opening new credit lines temporarily lowers your average account age, as newer accounts dilute the strength of older repayment records within your credit age.

Balance Between Old and New Accounts

Maintaining older accounts while adding new ones creates a balanced credit age, showing lenders you can handle credit responsibly across different periods.

Frequency of Credit Applications

Applying for credit too often lowers your average account age, signalling potential financial stress and reducing the overall strength of your CIBIL history.

Type of Credit Accounts

A healthy mix of credit cards and long-term loans improves your credit age, showing lenders you can manage both short and long-term credit responsibly.

Dormant Accounts

Dormant but active accounts still add value to your credit age, helping extend your profile even if you’re not actively using them for transactions.

Mergers or Balance Transfers

Balance transfers or account mergers may reset your credit card length, shortening your average account age and weakening the overall stability of your credit profile.

Here are the most effective ways to build and maintain a strong credit history that strengthens your CIBIL history and overall credit age:

• Always repay EMIs and credit card bills on or before the due date to avoid penalties and protect your score

• Keep your credit card length intact by maintaining old accounts, as long-held accounts add weight to your credit age

• Keep your credit utilisation ratio low, preferably under 30%, as it signals to lenders that you manage credit wisely and are not overly dependent on borrowing

• Limit new credit applications, since multiple enquiries within a short span reduce your score and shorten your average credit age

• Regularly monitor your CIBIL history to identify and correct errors early for an accurate financial record

• Diversify credit types by balancing short-term cards and long-term loans to present a stable repayment track record

• Avoid co-signing risky loans, as any default by the primary borrower negatively affects your own credit profile

• Pay more than the minimum due on credit cards to prevent interest build-up and show repayment consistency

• Resolve disputes quickly with lenders or bureaus to prevent negative marks from damaging your CIBIL history

• Keep accounts active for the long term, ideally 7–10 years, to strengthen your overall credit age

Although often used interchangeably, length of credit history and credit age measure different aspects of your borrowing record. Knowing the difference helps you understand how lenders evaluate your CIBIL history:

• Length of Credit History refers to the age of your oldest credit account. For example, if you opened a credit card in 2010, your length of credit history is 13 years.

• Credit Age is the average age of all your accounts combined. For instance, if you have one 10-year-old loan and one 2-year-old card, your average credit age is six years.

• A longer credit history builds trust by showing lenders your financial behaviour over an extended period. A higher average credit age highlights consistent repayment discipline across multiple accounts.

• Banks and NBFCs prefer borrowers who have both a long credit history and a strong credit age. Together, these factors indicate financial stability and reliable repayment behaviour.

You can check your CIBIL score for free on reliable platforms such as Bajaj Markets to track your credit health easily. Here is how you can check:

1. Visit the Bajaj Markets website and go to the ‘CIBIL Score’ section

2. Click on the ‘Check Score Now’ option displayed on the page

3. Enter your personal details, including name, email ID, PAN, pincode, date of birth, and mobile number

4. Select your employment type from the dropdown menu provided

5. Tick the consent box to allow access for verification

6. Click on the ‘Get Score’ button to continue

7. Enter the OTP received on your registered mobile number and click on ‘Proceed with OTP’

8. Once your details are verified, your CIBIL score will be displayed instantly